Petr Panteleev and Sergey Krushanovsky // Kyivvodokanal will master UAH 56.9 billion // KV collage
The Capital City Council approved the Scheme for Optimizing Water Supply and Sanitation Systems in Kyiv, which actually allowed PJSC AK “Kyivvodokanal” to master UAH 56.9 billion in the coming years to master UAH 56.9 billion for various works (including UAH 12.6 billion from the city budget ). For these funds, in particular, it is necessary to reconstruct two water supply stations, the Bortnitskaya aeration station (BSA), transfer and replace a number of pipelines in the capital, build new pressure sewers and a reversible pumping station on Bolshoi Island, etc. Based on the fact that such plans are put before the “Kyivvodokanal” will master UAH 56.9 billion for a long time, and the results of such work are more than modest, there is no hope for the successful implementation of the “new scheme”. Of course, undefeated corruption will also interfere.
As became known KVrecently entered into force in the capital decision City Council No. 5819/5869 dated December 8, 2022 “On approval of the Scheme for optimization of water supply and sanitation systems in Kyiv“.
This document was approved at the initiative of the City Council commission on housing and communal services and the fuel and energy complex (housing and communal services and fuel and energy complex), which on October 12, 2022 registered the corresponding draft decision. During the plenary meeting of the Kyiv City Council, which took place on December 8, 2022, it was not discussed supported 91 deputies.
The purpose of making this decision in the above-mentioned commission was called “the need to eliminate identified deficiencies and develop centralized water supply and sanitation systems, improve the quality of drinking water, the efficiency of wastewater treatment, the reliability of systems for ensuring the rational use of material and energy resources, reduce the use of gaseous chlorine and replace it with safer reagents“.
As reported, in the explanatory note to the approved draft decision, the approval by the city authorities of the Scheme for Optimizing Water Supply and Drainage Systems is a requirement of the National Commission for State Regulation in the Spheres of Energy and Utilities (NEURC). At the same time, the explanatory note clarifies that the implementation of this decision of the Kyiv City Council will not require additional allocation of funds from the capital budget due to the fact that the measures provided for by the Scheme are already included in the “Comprehensive Target Program for Improving Energy Efficiency and Development of Kyiv Housing and Communal Infrastructure for 2021. −2025” (approved decision City Council No. 1241/1282 dated May 27, 2021).
It should be noted that the developer of this Scheme was the state enterprise (SE) “Scientific-Research and Design-Technological Institute of Urban Economy” (NDKTIMG).
According to the financial optimization scheme, the city authorities plan to spend 56.9 billion hryvnias on modernization of water supply and sanitation systems, including 12.6 billion hryvnias from the city budget of Kyiv, 9 billion hryvnias of own funds of PJSC “Joint-Stock Company (AK)” Kyivvodokanal “, UAH 34.7 billion of credit funds, as well as UAH 598.9 million from the state budget. The plan for the implementation of these works is drawn up by the city leadership for an indefinite period, but most of the activities are planned to be completed by 2026.
Thus, the city authorities are planning to reconstruct the Dnieper and Desnyansk waterworks (the total estimate of work is UAH 1.7 billion and UAH 3.3 billion, respectively), to transfer and replace a number of pipelines in the capital (UAH 2.5 billion), to reconstruct existing and construction of new pressurized sewer collectors (UAH 11.5 billion), construction of new water supply networks in several locations (UAH 1.1 billion), construction of a reversible pumping station on Bolshoy Island (an island on the Dnieper in the Vyshgorodsky district, UAH 2 billion) other. Also, the city administration still intends to carry out the reconstruction of the BSA (total estimate – 27 billion hryvnia) – to reconstruct the wastewater treatment facilities, build a technological line for the processing and disposal of sludge, reconstruct pressure silt pipelines and dams of silt fields.
In addition, the activities of Kyivvodokanal in recent years have been associated with Dmitry Andrievsky, a deputy of the Kyiv City Council of the VI convocation (elected from the Vitaliy Klitschko Bloc), a people’s deputy of the VII and VIII convocations of the Verkhovna Rada (elected from the Petro Poroshenko Bloc) and an ex-member of the supervisory board of this company (until March 2009 G.). As KV reported, it was he who, it seems, was the unofficial curator of the odious Kyivvodokanal excavator Dmitry Novitsky (headed “this monopolist from April 2016 to April 2021), with whom most of the scandals surrounding the activities of the water utility in past years are connected.
The financial scheme specifies that it is planned to repay the principal amount of borrowings under the sub-loan agreement dated December 4, 2014 using the funds of PJSC “AK “Kyivvodokanal”. This is a loan under the Second Urban Infrastructure Development Project (loan amount – 11.4 million dollars. – KV) According to this agreement, for credit funds, the water utility carries out the reconstruction of the first lift of the Dnieper waterworks, the third lift of the Desnyanskaya waterworks, the modernization of booster stations with the installation of energy-efficient equipment, etc. At the same time, the document specifies that “in 2022-2026, it is planned to provide funds for the repayment of the loan body in the amount of $4.2 million in the tariff structure, and Kyivvodokanal plans to repay the entire volume of borrowings until 2031.
The document notes that most of the pumping equipment at water pumping stations has been in operation since the 40-70s of the last century, is very outdated and does not meet energy efficiency requirements. The latter fact is one of the reasons for significant energy costs: the paper notes that in 2018, the share of electricity costs was 22% of the total cost of production. In addition, the use of such equipment increases the likelihood of accidents at pumping stations, which may necessitate the simultaneous disconnection of a large number of subscribers.
The developers of the Scheme also indicate that the service life of 27.35% of water supply pipes and 33.01% of drainage pipes is more than 50 years. At the same time, more than half of the water pipes of the distribution system of water supply (50.5%) and drainage (53.7%) are worn out by more than 90%. Due to the high level of deterioration and accident rate of pipelines in the water supply system, the indicator of water losses in the city’s distribution network has increased (in 2020 it set 22.46%), which in turn leads to an increase in the cost of services. The document states that clean water tanks at the Oktyabrskaya and Kirovskaya pumping distribution stations have been in operation for more than 115 years and have bottom and wall damage.
The developers of the Scheme paid special attention to BSA – a complex of engineering structures, equipment and communications in the Darnitsky district of Kyiv, designed for complete biological treatment of wastewater in the capital. In particular, the State Enterprise NDKTIMG noted that the existing treatment facilities of this station are not structurally and technologically adapted to the new composition of wastewater and the increase in the concentration of pollution in them. In particular, we are talking about the absence of the final stage of treatment of sludge formed in the process of wastewater treatment and accumulated over decades in sludge fields. In this regard, the BSA requires reconstruction, in particular, the introduction of methods for the deep removal of nitrogen and phosphorus compounds.
As KV has repeatedly reported, the core activities of PJSC “AK “Kyivvodokanal” are accompanied by regular scandals. However, their main reason is most often not obsolete infrastructure and equipment, but possible financial abuse by company officials.
For example, back in January 2014, the General Prosecutor’s Office of Ukraine (GPU) became interested in public procurement of PJSC “AK” Kyivvodokanal “. As part of the criminal proceedings, law enforcement officers suggested that the company’s management violated applicable law: for example, Kyivvodokanal purchased chemical reagents from TD Kodis-Service LLC for a total amount of more than 90 million hryvnias at inflated prices and unreasonably paid more than 30 million hryvnias for legal services if there is a legal department in the state of the enterprise.
In addition, the work of the natural monopolist has repeatedly raised questions in the deputy corps of the Kyiv City Council. In particular, in 2018, the commission of the City Council on compliance with the rule of law, law and order and combating corruption had complaints about the purchases of this company. Then the deputies learned that Kyivvodokanal managed to transfer 404 million hryvnia to contractors in less than two years without holding tenders (a quarter of the “before-threshold” purchases of all metropolitan KPs). At the same time, most often only 10 “selected” companies received contracts without a tender from Kyivvodokanal.
According to the analytical system Youcontrol, PJSC “AK “Kyivvodokanal” (until May 2017 – PJSC AK Kyivvodokanal) was registered on June 2, 1992, although de facto the company traces its history back to Soviet times. The authorized capital of Kyivvodokanal is UAH 175.48 million. To date, 25.46% of the shares of this PrJSC is in the municipal property of Kyiv (represented by the Department of Communal Property of the Kyiv City State Administration. – KV), and 67% of the shares of Kyivvodokanal are owned by PJSC “Company Kievenergoholding” (almost 61% of the shares of this company are also owned by the company, another 39% of the shares are owned by an offshore company from Cyprus “Densec Limited” and the British company “A Artio Global Investors”). The remaining stakes in PJSC “AK” Kievvodokanal “comprise less than 10%.
Previously in the media reportedthat real control over this metropolitan monopoly (through PJSC “Company Kyivenergoholding”) can be exercised by people associated with the Suprunenko brothers – people’s deputy of the VI and VIII convocations of the Verkhovna Rada Alexander Suprunenko and Vyacheslav Suprunenko (deputy of Kyiv and the Kyiv City Council) son-in-law of the ex-mayor of Kyiv Leonid Chernovetsky ). Also, among those who obviously had so far been related to PJSC Kyivenergoholding, journalists named the entourage of Sergei Lyovochkin, head of the Presidential Administration Viktor Yanukovych, People’s Deputy of Ukraine of the current IX convocation of Parliament, one of the leaders of the now banned in our state pro-Russian party Opposition Platform – For a life”. The latter also de facto controls another utility monopoly in the capital, JSC Kyivgaz.
In addition, the activities of Kyivvodokanal in recent years have been associated with Dmitry Andrievsky, a deputy of the Kyiv City Council of the VI convocation (elected from the Vitaliy Klitschko Bloc), a people’s deputy of the VII and VIII convocations of the Verkhovna Rada (elected from the Petro Poroshenko Bloc) and an ex-member of the supervisory board of this company (until March 2009 G.). As KV reported, it was he who seemed to be unofficial curator odious ex-head of “Kyivvodokanal” Dmitry Novitsky (headed “this monopolist from April 2016 to April 2021), with whom most of the scandals surrounding the activities of the water utility in recent years are associated.
Since April 12, 2021, the Chairman of the Board – General Director of PJSC “AK “Kyivvodokanal” is Sergei Krushanovsky (in the collage on the right). In this position, he replaced Dmitry Novitsky, mentioned above. In KSCA, the work of PJSC “AK “Kyivvodokanal” is coordinated by the Deputy Mayor Petr Panteleev (in the collage on the left).
Since the beginning of the current IX convocation of the City Council, since December 8, 2020, the Commission of the Kyiv City Council on housing and communal services and the fuel and energy complex has been headed by a deputy Alexander Brodsky (Faction of VO “Batkivshchyna”). This body consists of 7 deputies. In the last term of the Kyiv City Council (2015-2020), Brodsky, being a member of the Unity faction, headed the commission on trade, entrepreneurship and regulatory policy.
Ivan Kulik, translation Skeleton.Info
DOSSIER: Dmitry Andrievsky: a millionaire swindler from the special services. PART 1